RBI authorised to direct banks to start insolvency process in respect of a default
The Government (Ministry of Law and Justice) has notified the Banking Regulation (Amendment) Ordinance, 2017 (No. 1 OF 2017) to further amend the Banking Regulation Act, 1949. It has come into force with immediate effect.
As per the preface to the Ordinance, it has been necessitated by the unacceptable high level of of stressed assets in the banking system which required immediate resolution. It further states that provisions of Insolvency and Bankruptcy Code 2016 can be effectively used for the resolution of stressed assets by empowering the RBI to issue directions in specific cases.
As per the Ordinance promulgated by the President of India, the Central Government has been empowered to authorise Reserve Bank of India to issue directions to any banking company to initiate insolvency resolution process in respect of a default under the provisions of Insolvency and Bankruptcy Code 2016. (Section 35AA).
Otherwise also, the RBI has been authorised to issue directions to banks for resolution of stressed assets. RBI may also appoint authorities/committees for such purpose.
Download Banking Regulation (Amendment) Ordinance, 2017 Click Here >>
Mere non-deduction of TDS by the deductor on a transaction does not change the character of the transaction to make…
ICAI has extended the last date to online submit Multipurpose Empanelment Form (MEF)- 2026-27 from 29th August 2026 to 9th…
Can a demand notice be issued u/s 156 for non-payment of Dividend tax u/s 115-O, when as per assessment order…
The issue already examined and adjudicated by the quasi-judicial authority, i.e., CIT(Appeals), cannot be reopened on the same set of…
One TDS is deducted, credit has to follow, failure of deductor to deposit the amount to the credit of the…
Merely because assessee did not explain purpose of cash withdrawal from bank, it can not be taxed u/s 69C as…